Photon Control Reports Fourth Quarter and Annual 2020 Financial Results With Record Annual Revenue and Net Income

VANCOUVER, British Columbia, March 18, 2021 (GLOBE NEWSWIRE) -- Photon Control Inc. (“Photon Control” or the “Company”) (TSX: PHO), a leading manufacturer of fiber optic measurement solutions to the semiconductor industry, is pleased to announce its financial results (in Canadian dollars) for the three months and full year ended December 31, 2020.

Highlights for the fourth quarter and year ended December 31, 2020 were as follows:

• Record annual revenue of $64.7 million (2019: $32.7m) and $14.9 million (Q419: $8.9m) for the quarter;
• Record annual adjusted EBITDA¹ of $22.8 million (2019: $7.2m) or 35% (2019: 22%) of revenue and $3.7 million (Q419: $2.1m) or 25% (Q419: 24%) for the quarter;
• Record annual net income of $14.1 million (2019: $2.4m) and $1.2 million (Q419: $0.7m) for the quarter;
• Annual basic earnings per share of $0.13 (2019: $0.02) and $0.02 (Q419: $0.01) for the quarter;
• Annual gross margin of 60% (2019: 54%) and 55% (Q419: 53%) for the quarter;
• Record annual investment of $5.7 million and $1.8 million for the quarter into Research and Development;
• Record year-end backlog of $30.3 million (2019: $20.8m); and
• Cash and cash equivalents of $48.4 million at December 31, 2020, increased $15.0 million from December 2019.

“We are very pleased to announce a record year for Photon Control, and a strong finish to 2020, with Q4 revenues 69% higher than the comparable period in 2019,” said Nigel Hunton, Chief Executive Officer. “Throughout the year, we executed on our strategic objectives of outpacing semiconductor capital equipment growth and growing earnings faster than revenues. Compared to industry growth of approximately 18% in 2020, our revenues increased 98%, and earnings growth exceeded 500%, compared to 2019. Our relative outperformance is testament to the enabling role of Photon Control within the global semiconductor manufacturing industry, the strength of our customer partnerships with the world’s leading Original Equipment Manufacturers (“OEMs”), and the increasing importance of precise control of critical processes at successive technology nodes.”

The Company’s revenues are chiefly derived from the semiconductor capital equipment sector, and expenditures for Wafer Fabrication Equipment (“WFE”) have continued at record levels in Q4 of 2020 and Q1 of 2021 to date, and are expected to increase year-over-year in 2021.

Fourth Quarter and Annual 2020 Financial Results

Total revenue for Q420 increased to $14.9 million (Q419: $8.9m) and for the full year, revenue increased to $64.7 million (2019: $32.7m). The Company’s revenues are strongly influenced by overall improved semiconductor capital expenditures on WFE as electronics and data become an increasing part of everyday life. The Company’s outperformance was aided by market penetration into Asia, assisted by strong partnerships with distributors. Our annual revenues were also positively impacted by customers building stock and de-risking the supply chain in response to COVID-19.